Iron ore exploration and development company Cape Lambert Iron Ore Limited (ASX: CFE, AIM: CLIO) (“Cape Lambert”) has signed a binding agreement with Best Decade Limited, a company associated with Mr Liguo Ding, the Chairman of Singapore listed steel manufacturing and trading group Delong Holdings Limited, for the sale of 70% of the Cape Lambert Project, for AUD$250m.
Best Decade Limited, owns 78% of Delong Holdings Ltd which is listed on the Singapore stock exchange (SIN: 515) and is headquartered in Beijing. Its flagship business, Delong Steel, is located 430km southwest of Beijing in the industrial city of Xingtai (Hebei Province), near raw material sources and an extensive client base encircled by the Bohai Economic Zone. The group operates in China, Singapore, South Korea, Vietnam and Indonesia.
So basically Mr Ding is selling to himself (78%) under another name.
CFE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
